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F1 Breakdown - With 93 million users and profitable, Klarna's IPO might redefine fintech valuations.

Klarna's hybrid payment model, powered by a proprietary payment network and AI-driven underwriting, targets a $450B market, driving $105B GMV, 93M active users, and profitability ahead of its IPO.

Author

Nick Madrid
March 18, 2025

Introduction

Klarna filed its F-1 late last week for its upcoming IPO, offering insights into one of the world's most recognizable fintech companies. This breakdown examines Klarna's business (with particular emphasis on the Klarna Card), market strategy, customer economics, financial performance, and future vision.

The Core Business

Key Numbers

  • 93 million active consumers

  • 675,000+ merchants across 26 countries

  • $105 billion in gross merchandise volume (GMV) in 2024

  • 99% of transactions were interest-free

  • 76% of 2024 revenue came from Transaction and Service revenue

  • 24% of 2024 revenue came from Interest Income

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